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Flexible Budget for Assembly Department

Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department:

Direct labor per filing cabinet	30 minutes
Supervisor salaries	$90,000 per month
Depreciation	$7,500 per month
Direct labor rate	$24 per hour

Prepare a flexible budget for 5,000, 12,500, and 20,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not significant. Enter all amounts as positive numbers.

Steelcase Inc. Assembly Department Month Ending August 31 (Assumed Data)

Units of production	5,000	12,500	20,000
Variable cost:
Accounts payableDirect laborIndirect laborIndirect materialsSupervisor salaries	$- Select -	$- Select -	$- Select -
blank	blank	blank	blank
Fixed cost:
Accounts payableDirect laborIndirect laborIndirect materialsSupervisor salaries	$- Select -	$- Select -	$- Select -
DepreciationDirect laborDirect materialsIndirect laborIndirect materials	- Select -	- Select -	- Select -
Total fixed cost	$fill in the blank 13	$fill in the blank 14	$fill in the blank 15
Total department costs	$fill in the blank 16	$fill in the blank 17	$fill in the blank 18

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